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BHEL to diversify into power distribution, generation
New Delhi, May 11: State-owned Bharat Heavy Electricals Ltd has said it would diversify into power distribution and generation to ensure steady cash inflows.
New Delhi, May 11: State-owned Bharat Heavy Electricals Ltd has said it would diversify into power distribution and generation to ensure steady cash inflows.
The diversifed business activities should eventually give
BHEL 30-35 per cent of its total revenue, BHEL director
(finance) S Srinivasan told a news agency here, adding that funds was no constraint for the cash-rich, debt-free corporation.
"We will be looking at entering the power generation and distribution business as the electricity bill has been passed by the Parliament," he said. Even after pre-paying its costlier shot term debts totalling over Rs 730 crore, BHEL was left with cash surplus of about Rs 300 crore which it had parked in approved investment schemes, Srinivasan said.
He said Bhel was expected to generate surplus of Rs 500 crore annually over the next few years.
As far as the distribution business was concerned, BHEL would first consider those cities where it already had a presence, he said, adding that initially Trichy, Haridwar and Bhopal could be considered for distribution venture. Bureau Report
"We will be looking at entering the power generation and distribution business as the electricity bill has been passed by the Parliament," he said. Even after pre-paying its costlier shot term debts totalling over Rs 730 crore, BHEL was left with cash surplus of about Rs 300 crore which it had parked in approved investment schemes, Srinivasan said.
He said Bhel was expected to generate surplus of Rs 500 crore annually over the next few years.
As far as the distribution business was concerned, BHEL would first consider those cities where it already had a presence, he said, adding that initially Trichy, Haridwar and Bhopal could be considered for distribution venture. Bureau Report